P
   
   Parity
   















 

P

Parity

(1) The condition in which a bond sells at its nominal or face value. (2) The condition in which an option sells at its intrinsic value. The maximum of 0 or spot minus strike for a call and the maximum of 0 or strike minus spot for a put. See also Fair Value of an Option, Intrinsic Value of an Option.

Glossary * P